Everything You Need To Know About Fortnite Settlement With FTC

Fortnite, the wildly popular multiplayer shooter game that captured the hearts of millions of players, found itself in the midst of a legal storm when its parent company, Epic Games, faced allegations of deceptive practices that led users, including children and teenagers, into making unwanted in-game purchases. The United States Federal Trade Commission (FTC) stepped in, and in December, a significant settlement was reached. This article delves into all the essential details about the Fortnite settlement with the FTC.

The Background:

Fortnite, known for its addictive gameplay and vibrant graphics, enjoyed massive success, especially among younger gamers, over the past few years. However, this success came with a downside, as numerous players reported unintended in-game purchases. The FTC took note of these issues and initiated an investigation into Epic Games’ practices.

Deceptive Tactics:

The heart of the matter lies in allegations of Epic Games employing deceptive tactics to encourage players to make unwanted purchases. The FTC accused the company of using “dark patterns” and other manipulative design strategies to coax players into spending money on in-game items they did not intend to purchase. These tactics often led to young gamers racking up charges on their accounts without their parents’ consent.

Settlement Amount:

Epic Games agreed to pay a substantial settlement amount of $520 million to resolve the allegations raised by the FTC. This amount was split into two parts:

$275 Million: Epic Games agreed to pay this sum to the US government to settle claims that it violated the Children’s Online Privacy Protection Act (COPPA). The FTC alleged that Epic collected personal information from children under the age of 13 without obtaining parental consent.

$245 Million: This portion of the settlement was earmarked for refunds to consumers who were allegedly harmed by deceptive user interface design choices. The FTC contended that Epic’s user-interface design misled players into making purchases they didn’t want.

Eligibility for Compensation:

The FTC has opened the claims process for affected users, estimated to be more than 37 million in number. Those who may be eligible for compensation include:

• Users who were charged in-game currency for items they did not intend to purchase between January 2017 and September 2022.
• Parents whose children made unauthorized charges to their credit cards while playing Fortnite between January 2017 and November 2018.
• Users whose accounts were locked between January 2017 and September 2022 after reporting wrongful charges to their credit card companies.
• Claimants must be at least 18 years old, and for younger users, their parents or guardians can submit claims on their behalf.

How to Claim Compensation:

Eligible users have until January 17, 2024, to submit their claims and become part of the settlement class. The FTC is actively notifying potential claimants, who will receive an email from the commission with a claim number. Alternatively, users can directly visit the settlement website and file a claim using their Epic Games account ID.

Additional Restrictions and Prohibitions:

As part of the settlement agreement, Epic Games is prohibited from employing “dark patterns” or charging consumers without their explicit consent. Moreover, the company cannot lock players out of their accounts in response to chargeback requests from credit card companies disputing unauthorized charges.

Epic Games’ Response:

Epic Games, in a December blog post when the settlement was reached, acknowledged the agreement and stated that no developer creates a game with the intention of facing such legal matters. The company expressed its commitment to consumer protection and providing the best experience for its players.

The Fortnite settlement with the FTC marks a significant development in the world of online gaming and consumer protection. It underscores the importance of transparency and ethical practices in the gaming industry, especially concerning young and vulnerable players. As the claims process unfolds, millions of Fortnite users now have the opportunity to claim their share of the settlement and hold game developers accountable for their practices.

Also Read: How To Sell Your Items In Fortnite And Make A Profit?